opportunity 104 of 150 The approach that many businesses take to setting prices suggests that there is a perception that the evaluation of prices by consumers is an entirely rational and cognitive process. There also seems to be a view that the lowest price will win, or that lowering the price will increase demand. Some […]

opportunity 104 of 150 The approach that many businesses take to setting prices suggests that there is a perception that the evaluation of prices by consumers is an entirely rational and cognitive process. There also seems to be a view that the lowest price will win, or that lowering the price will increase demand. Some marketers, like some business people, still labour under the misapprehension that the supply and demand curve works, and it works because it is logical. Well, how logical is this? In a study conducted in conjunction with Economist magazine, respondents were offered the magazine as follows: One year subscription – online only – $59 One year subscription – print only – $125 One year subscription – print and online – $125 The findings were as follows: Online only option – 16% Print and online option – 84% In a second experiment respondents were offered: One year…